PM requests promoting GDP growth at gov’t meeting

At the event, the PM hailed positive signals of the economy, including macro-economic stability, low increase in consumer product index (CPI) in the first three months, a 3 percent credit growth, a 12.8 percent rise in export to upwards US$43 billion, foreign tourist arrivals numbering 3.2 million, and registered foreign direct investment topping US$2.9 billion.

During the first quarter, the State budget collection was equivalent to 23.4 percent of the estimate, up 13.5 percent annually. More than 26,500 new enterprises were established, up 11 percent in number and 45.8 percent in capital to VND270 trillion (US$11.3 billion). The Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI) rose to a 22-month high of 54.6 percent, higher than March’s 54.2 percent and ASEAN’s average 50.9 percent.

According to the provincial competitiveness index recently released by the Vietnam Chamber of Commerce and Industry (VCCI), the domestic business climate has continued improving with 51 cities and provinces climbing up the ranking.

However, he also pointed out low GDP expansion of 5.1 percent in the first quarter, which was attributable to low growth of the industry and construction sectors due to failure to accomplish set plans by oil exploitation and the processing industry.

He said disbursement of public investment was only 12.4 percent of the estimate in the first quarter, lower than the 16 percent rate recorded in last year’s same period.

Other concerns include slow equitisation of State-owned enterprises, pestment, road accidents, fires, deforestation, and child sex abuse.

As the US Federal Reserve plans to hike interest rates between now and the year’s end and 2018 and the new US administration favours trade protectionism, Vietnam’s exports and inflation are predicted to be hurt. Furthermore, the country is liable for a debt worth additional VND4.56 trillion (US$198.2 million), he said.

The government leader underscored the need to make thorough and flexible response to trade and monetary policies as well as closely track the economic restructuring, especially commercial banks, and improve economic capacity in terms of technology and management.

He also stressed the necessity to speed up the mobilization of investment capital in society to spur growth.

Also in the morning, the government listened to thematic reports on the fourth industrial revolution by Minister of Science and Technology Chu Ngoc Anh, experts and researchers from the Vietnam Software and IT Services Association.

Cabinet members gave their feedback on the National Assembly’s draft resolutions regarding notary public offices and adjustment of employers’ deposits into unemployment insurance fund.